ATV-maker Arctic Cat to move its HQ from Plymouth to 'trendy' North Loop

Arctic Cat is looking to boost its brand and expand its business by moving its headquarters to Minneapolis' "historic and trendy" North Loop.

The snowmobile and ATV-maker is currently based in Plymouth, but announced Tuesday it will be moving its corporate headquarters to take over the entire six-story 500 North 3rd St, providing 55,000 square feet of space.

That is five times the space in the company's current office, and despite finding trading conditions tough following the financial crisis, the company is confident of future growth and needs the extra space to achieve it.

"The Minneapolis North Loop is an historic and trendy warehouse district, making it a terrific complement for our iconic brand," CEO Christopher Metz said in a news release.

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"This desirable and up-and-coming area is near a host of urban amenities, and it offers easy access to public transportation and a central Twin Cities location that will help us attract talent as we grow. We are excited to enter a new era for Arctic Cat."

Metz's comments are a sign the company wants its corporate headquarters to have a higher profile "than its hidden office space on the 10th floor of a Plymouth office park," the Star Tribune reports.

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The company said the relocation will enable it to achieve its "strategic growth and innovation plans," saying it will move into the building in summer 2016 with 150-200 staff moving to the office.

Arctic Cat's manufacturing sites in Thief River Falls and St. Cloud should not be too affected, and while some workers will be asked to relocate to the North Loop, overall employment levels should remain the same.

The move comes over a year after the company's former CEO Claude Jordan resigned after difficult trading conditions saw its share price fall 35 percent in the first half of 2014, and the firm post a $1.5 million fourth quarter loss.

In its most recent results, Arctic Cat posted sales of $134.4 million in the first quarter of Fiscal 2016, and a net loss of $1.1 million, the company announced.

The Thief River Falls company is recalling the vehicles because the steering tie-rod can bend, potentially causing the driver to lose control. ATVs included in the recall have been sold at dealerships since February this year. The company is notifying registered owners.